Before adjusting anything, we can start from first principles, by simply recognizing that the nominal value of a deliberately and perpetually diluted fiat currency is no standard for measurement at all, and not a valid metric for measurement of wealth. It's like measuring the diameter of everything using a slowly but ever-shrinking balloon as a standard, with morons everywhere exclaiming, "Why, throw a big party, the value of everything seems to be growing--exponentially!" And when they see things that really are shrinking: "But the value of these things are remaining more or less constant!"
It's far worse than that, however, because at least that kind of shrinkage could be measured and adjusted out directly. It's not that simple. It isn't a simple balloon with a static leak into a vacuum. That would have long deflated into nothingness if that was the case. Air is being actively siphoned from real people (currency holders everywhere) to put air back into (read=THROUGH) that balloon, which will never be reinflated, due to the leaks in it that are growing exponentially in size and number. The leaks from that Fiat Currency Perpetual Wealth Motion/Redistribution Machine is used to inflate the NOMINAL values of myriad selective other parts of the economy -- distorting the REAL values of absolutely everything in it. So any so-called adjustments are going to be rendered moot and meaningless, because how do you "adjust" for something that is artificially, abnormally, in an amplified state of constant flux?
Even then, there is one way that you can adjust for it. It will not be perfect, but only because it will UNDERSTATE the adjustment that needs to be made, and that is to "price" everything in a basket of hard commodities only, for which there are real-time nominal prices going back a long, long way. Raw precious metals and base metals, NOT including gold and silver, which have also been artificially distorted along the way. That won't adjust for every distortion (including whatever distortions that gave rise for an artificial need for more of those minerals in the first place), and it won't say anything about the real wealth that NEVER WAS CREATED due to wealth-siphoning distortions that prevented private capital formation everywhere, but it will give you a better look at the relative values of real vs. nominal wealth.
Oh, also - their commenters are more reliably libertarian than people here. As far as its politics are concerned, it may as well call itself the Ron Paul Financial Forum.
Last edited by thoughtomator; 12-07-2012 at 02:30 PM.
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
- SAMUEL ADAMS
Yes, but they focus solely on bad news. Even when news is not bad, they spin an article to paint things in a negative light. Not every piece of information that is released by every entity that releases information is a sign that the world is about to end.Oh, also - their commenters are more reliably libertarian than people here. As far as its politics are concerned, it may as well call itself the Ron Paul Financial Forum.
Last edited by Steven Douglas; 12-07-2012 at 03:05 PM.
See all I really know is building stuff out of wood, this new-math used to figure wealth eludes me...If I sell off all my tools for pennies on the dollar what should I do to show these profits of which you speak?
I think the best Dire Straights on that album ,is, One World.....